Apple boss Tim Cook has warned that prices for the company’s products will rise due to soaring memory chip costs. The technology giant’s outgoing chief executive told the Wall Street Journal that price increases were “unavoidable” as the situation around memory chips had become “unsustainable”. Cook did not specify when prices would rise or which products would be affected, but the iPhone 18, expected to launch in September, is likely to be one of the devices impacted.
Memory chip costs have more than doubled since October 2025, driven up by the artificial intelligence boom and global supply chain disruptions. The war in Iran has also disrupted the global supply of helium, a gas crucial in making semiconductors, adding to the cost of computer chips. This has led to higher prices for consumers, with other technology giants also feeling the pressure from rising chipmaking costs.
Taiwan Semiconductor Manufacturing Company (TSMC), which makes advanced chips designed by companies such as Apple, Nvidia and AMD, would not rule out price increases due to inflation pushing up its costs. Samsung has warned of memory chip supply shortages making electronic devices more expensive. The average selling price of smartphones globally is expected to rise by around 20% in 2026 to an all-time high, according to research firm Omdia.
Apple’s new phones are likely to cost up to $150 more than the iPhone 17s as the firm upgrades their specifications to support new AI features. Most smartphone brands have already raised prices or cut specifications to protect their profit margins in response to rising costs. The price of Ram, typically one of the cheapest computer components, has more than doubled since October 2025.
The boom in artificial intelligence demand has driven up memory chip prices, while global supply chain disruptions and the war in Iran have added to the cost of computer chips. Other technology giants are also feeling the pressure from rising chipmaking costs, with TSMC and Samsung warning of price increases due to inflation and supply shortages. The new pricing reality is expected to be a permanent shift, not just a temporary spike.
Apple’s sales have been strong in recent months, with growth of 17% in the first three months of 2026 compared to the same period last year. However, the company has already removed the entry-level option from its Mac Mini compact computers, raising its starting price by about $200 (£150) earlier this year. The iPhone 18 is expected to be launched in September, but it remains unclear whether prices will rise for Apple’s new phones.
